Quarterly Balance of Payments Third Quarter 2023

The current account balance improved to a deficit of KSh 122.5 billion in the third quarter of 2023 compared to a deficit of 211.6 billion in a similar period of 2022 as shown in Table 1. Similarly, merchandise trade deficit narrowed from KSh 373.1 billion in the third quarter of 2022 to KSh 326.2 billion in the same quarter of 2023 and mainly supported the improved current account balance. Earnings from exports continued to grow, increasing by 19.7 per cent to KSh 270.0 billion, while imports declined slightly to KSh 596.2 billion in the quarter under review. Increased export earnings from tea and horticulture partly occasioned the growth in exports. During the quarter under review, receipts from international trade in services declined by 5.1 per cent to KSh 186.2 billion while service payments reduced by 5.0 per cent to KSh 150.0 billion. These developments resulted into a surplus of KSh 36.2 billion in services account balance, reflecting a reduction of 5.8 per cent. Remittance flows from Kenyans living in the diaspora, grew from KSh 114.3 billion in the third quarter of 2022 to KSh 155.9 billion in the corresponding quarter of 2023. This resulted into 35.2 per cent growth in the surplus of the secondary income account.